Living with a disability is difficult enough but sometimes the law can make it even harder.
Disabled people who receive a large gift of money or a windfall in a will often do not always gain in the same way as the able-bodied. It counts against their means-tested benefits.
So in reality, the windfall makes less of a difference – and in some instances, virtually no difference. Their benefits stop until their savings slip back below the means testing threshold.
Changes to the law are in progress – legislation is due to go before the House of Lords. But in the meantime, what can be done? Quite a lot actually.
In our experience, people in this situation are often all too aware of the potential problems but not always aware of the solutions.
Often the disabled child’s parents believe the only solution is to exclude the child from their will, in the hope that any able-bodied siblings will do the right thing and look after them.
But divorce, bankruptcy or sometimes even pure selfishness on the part of the able-bodied sibling(s) may mean the disabled sibling gets nothing.
Disabled trusts are one answer to the problems outlined above. If the windfall is paid into a trust – rather than directly to the individual – then it does not count against their benefits.
Mention the word ‘trusts’ to people and they tend to assume (wrongly) that they are either painfully complex or available only to the super wealthy.
But this does not have to be the case: more and more people of quite normal means are using trusts to safeguard their finances.
And trusts do not have to be complicated. Our specialist wills and probate solicitors handle all the legal matters, explaining the process to you in plain English – so you’re in control every step of the way.
To find out more about how trusts can help you, contact Coles Miller Solicitor Anthony Weber, a Partner at the firm and head of our Wills & Probate Department. 01202 673011.
